TOKYO: Nissan Motor Co. said on Tuesday it will shut its global headquarters in Japan for 16 days through early May to contain the spread of the coronavirus, even though the government has permitted keeping workplaces open to get the economy running.
Prime Minister Shinzo Abe has allowed manufacturing plants to keep operating under a state of emergency that was declared this month and broadened last week, but Nissan and its rivals had already suspended output at many of their factories due to plummeting global demand.
Nissan is the latest Japanese company to shutter its global headquarters to reduce the number of staff commuting, as the COVID-19 infections in the country increased to around 11,000 this week.
Canon Inc. and Toshiba also announced similar measures earlier this month.
Nissan said that 15,000 employees at its headquarters in Yokohama and main R&D center in nearby Atsugi, Kanagawa Prefecture, would be required to take leave for 16 days from next Monday through Japan’s “Golden Week” holiday that starts on May 4.
Its headquarters would be closed to all but essential workers, a Nissan spokeswoman said, adding that those affected would receive “the majority” of their full salaries during the period.
She said the measures were aimed at keeping more than 90 percent of its employees away from its offices, up from 80 percent at the moment.
Like many of its global rivals, Nissan has also shuttered most of its global production facilities in compliance with “shelter at home” directives to contain the spread of the virus.
Nissan stopped production at its Tochigi vehicle plant, which produces the Skyline sedan and Infiniti models, for much of this month, and plans to keep it closed for most of May.
Its plant in Kyushu, southern Japan, will operate only the day shift during April and May and shut down completely for four days during that period.
Nissan’s bigger rival Toyota Motor Corp. has said it expects to cut its domestic production by around 40 percent as it significantly reduced output at its Japanese plants starting earlier month.
Honda Motor Co. also said it would stop production at some of its domestic plants next week, citing disruptions in its global supply chain.
Most automakers are bracing for a big financial hit from the virus, as lockdowns in the United States and Europe have kept buyers out of dealerships. But Nissan’s sales and profits had been slumping even before the outbreak, forcing it to roll back on an aggressive expansion plan pursued by ousted leader Carlos Ghosn.
The pandemic has only piled on urgency and pressure to renew efforts to downsize. Nissan is due to announce a new recovery plan next month.
Nissan to close global HQ, other Japan sites due to coronavirus
https://arab.news/jhdgv
Nissan to close global HQ, other Japan sites due to coronavirus
- Prime Minister Shinzo Abe has allowed manufacturing plants to keep operating under a state of emergency that was declared this month and broadened last week
- Nissan is the latest Japanese company to shutter its global headquarters to reduce the number of staff commuting
Supplier hub to anchor Saudi car industry, says TASARU CEO
RIYADH: Saudi Arabia’s Public Investment Fund is stepping up efforts to localize automotive manufacturing, with its portfolio company TASARU announcing partnerships with five Tier-1 global suppliers to localize advanced component manufacturing in the Kingdom.
The agreements were announced at the fourth PIF Private Sector Forum in Riyadh. TASARU also revealed plans to establish a new Supplier Hub in the King Salman Automotive Cluster in King Abdullah Economic City, designed to support next-generation vehicle development and strengthen the national automotive ecosystem in alignment with Vision 2030.
Speaking to Arab News on the sidelines of the forum, Michael Mueller, CEO of TASARU, said: “You cannot build cars without having the right partners from the supplier side, and with that, together with the OEMs, we selected the partners that we just announced today to localize them.”
He added that the presence of large international suppliers is expected to attract smaller Tier-2 and Tier-3 manufacturers, helping the ecosystem scale.
The five partners include Shin Young for metal stamping and body structures, JVIS for exterior plastics, and BENTELER for chassis and hot-formed steel components. Guangxi Fangxin will supply interior systems, while Lear Corp. completes the group, with all expected to establish manufacturing operations in the Kingdom.
Founded more than three years ago, TASARU was established to introduce new technologies into Saudi Arabia’s mobility sector. The company has prioritized localizing smaller OEM and supplier businesses while bringing next-generation solutions into the Kingdom.
Mueller said visible progress on factory construction by Ceer, Lucid and Hyundai is shifting perceptions about the sector’s viability.
“A lot of people on the sideline watched whether automotive is really happening,” he said. “Now they recognize that the factories … are under construction, so that’s the first signal that it’s not just the bubble. It’s not just PowerPoint. It’s getting real now on the ground.”
The CEO shares that KAEC is positioned as a hub for Saudi Arabia’s automotive industry, making it a strategic location for the TASARU Supplier Hub. The facility is designed to support OEMs and next-generation vehicles, including Ceer and Lucid Motors, through a shared, just-in-time manufacturing model with integrated logistics and regulatory support.
TASARU will provide infrastructure and operational support, while partners bring technical expertise and gradually develop training centers to build a local workforce, Mueller said.
He positioned Saudi Arabia as an attractive base for global suppliers because of its access to minerals and rare earth resources, energy availability and coordination across PIF portfolio companies and government entities.
“They have access to minerals. They have access to rare earth. They can benefit from what is already existing. They have stable energy solutions. I think this footprint might benefit from the whole ecosystem as it is, not just automotive,” he said.
Companies without a Saudi footprint risk missing a “huge opportunity,” Mueller added.
He said advancing the industry will require clearer regulatory frameworks, including defined trigger points and licensing pathways that allow companies to execute their mandates.
“Of course, you need to have more or less the regulatory framework to allow autonomous cars, sooner or later, on the streets. But it's happening, and this is a huge chance also for Saudi Arabia,” Muller said.
He added: “If you are advanced in bringing such regulations onto a fast track, then you have a huge opportunity to be one of the first countries that establish this.”
With rising traffic levels in Riyadh, Mueller said emerging mobility technologies could help solve first- and last-mile transportation challenges.
“If the Metro is already full, that is good because people are using it. Now, you have to connect the dots. You have to finally make sure that people get from home to the metros and or to the bus station. So this first last-mile transportation is something where new technologies might help to bridge that,” he said.
The CEO said the project is expected to take roughly one and a half to two years for suppliers to go live. More broadly, the initiative reflects Saudi Arabia’s transition from investment attraction to full-scale industrial localization, strengthening local content, private-sector participation, and long-term industrial resilience in line with Vision 2030.
